Can Zoomin Groomin share performance data of a franchisee's business with other franchisees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
nd the long-term portion that will be recognized as previously stated.
NOTE 9 - FRANCHISE AGREEMENT
The terms of the Company's franchise agreement will be as follows:
- A. The Company will grant the right to use the Company name, trademark and system in the franchisees franchise development business.
- B. The franchisee is obligated to pay a non-refundable initial franchise fee.
- C. The franchisee is obligated to pay a monthly royalty fee and other fees as outlined in the agreement.
- D. All other terms of the Franchise Disclosure Document.
EXHIBIT G NON-DISCLOSURE AGREEMENT
THIS NON-DISCLOSURE AGREEMENT ("Agreement") is entered into this day of, 20 ("Effective Date"), by and between Zoomin Groomin USA LLC ("Company"), a Virginia limited liability company at 780 Lynnhaven Pkwy, Suite 240, Virginia Beach, VA 23452, and ("Recipient") for the purpose of preventing the unauthorized disclosure of Company's Confidential Information.
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- Confidential Information. "Confidential Information" means all information or data (oral, written, and electronic) disclosed or furnished by Company to Recipient, including but not limited to all business processes and information, negotiations and negotiated terms to the Franchise Agreement or other Agreement between the parties, financial data, trade secrets, customer lists, agreements, manuals, operating materials, knowledge, know-how, and all other data, regardless of whether such information is designated as "Confidential Information" at the time of its disclosure. Confidential Information does not include information (a) already in Recipient's possession before receipt from Company; (b) that is a matter of public knowledge through no fault of Recipient; or (c) that is rightfully received by Recipient from a third party not owing a duty of confidentiality to Company.
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- Use of Confidential Information. Recipient shall not, directly or indirectly, during the term of this Agreement or thereafter, communicate, divulge, or use any Confidential Information for the benefit of any other person, partnership, association, or corporation and shall use the Confidential Information only as authorized by Company. Recipient agrees to take reasonable measures to prevent unauthorized persons or entities from accessing Confidential Information in Recipient's possession.
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- Obligation to Maintain Confidentiality.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company requires franchisees to sign a Non-Disclosure Agreement. This agreement prevents franchisees from divulging confidential information, including financial data, to any other person or entity unless authorized by Zoomin Groomin. This suggests that Zoomin Groomin aims to maintain the confidentiality of franchisee-specific data.
However, the FDD also states that if a franchisee leaves the Zoomin Groomin system, their contact information may be disclosed to other potential buyers. This implies that while specific financial performance data may not be broadly shared, contact information could be, potentially allowing for direct communication between franchisees regarding their experiences.
Item 19 of the Zoomin Groomin FDD provides financial performance representations based on data submitted by franchisees. While this aggregated data is shared, the FDD does not explicitly state whether Zoomin Groomin shares individual franchisee performance data with other franchisees during the term of their agreement. Given the Non-Disclosure Agreement, it is unlikely that Zoomin Groomin would share specific performance data without authorization.